PVC-S imports to Ukraine up 29% over the seven months

August 16/2011

MOSCOW (MRC) -- Over the seven months, Ukrainian companies
increased imports of suspension PVC to 77.75 KT, that was 29% more year on year.
In July, total volume of PVC-S imports decreased to 7.4 KT, according to MRC
DataScope.

This year the peak of PVC-S imports to the Ukrainian market was observed
in April (17.75 KT), and after that it was gradually diminishing. April peak of
resin imports was primarily stipulated by intentions of some market players
to contract PVC at the minimum price in January- February.

A launch of a new facility of PVC-S production by Karpatneftechem in
Kalush (300 KT) also contributed to the import reduction.

In July, US suspension supplies made only 1.8 KT, while in the peak month
total PVC imports from North America made nearly 12 KT. On the contrary,
European suspension supplies increased to 5KT. Traditionally the main European
suppliers are Anwil, BorsodChem, Vinnolit and Spolana.

The further decline of PVC imports in Ukraine is soon expected on the
back of seasonal factors, as well as under the pressure of domestic producers.
In July, Karpatneftechem produced more than 12KT of PVC-S. Totally, over less
than three months, the company produced more than 22 KT of resin. In September,
Karpatneftechem is expected to work at full capacity.

Full interpretation of the analytics on the Ukrainian PVC market by
grades, technologies, converters is available in MRC
DataScope for May, June and July, 2011